Liquidators May Be Competing With Your Primary Sales Channels

Inventory liquidators selling directly to consumers may be hidden competitors that dilute brands and needlessly reduce margins. There is a “right way” to leverage liquidators while protecting your primary sales channels. See how.

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Did you hear about the guy who went to a big box merchant to buy a new refrigerator?

When the time came to pay, he noticed a sign at the counter that said “If you can get a lower price, we will match it!” Upon seeing this, the guy pulled out his phone, scanned the serial number, went online, sorted by price and found the same unit for $1,000 less than the store’s sale price. He showed the sales clerk his phone and the clerk matched the price. The consumer won big, but the retailer lost and it wasn’t a fair fight.    

Unfortunately for the retailer, the clerk was looking at an online salvage store price and that price was almost 50% less than “regular retail.” The clerk did not realize, nor care, that they matched their employer’s price with one from an online reseller that was selling overstocks and refurbs -- likely bought at an auction or from a liquidator for pennies on the dollar.